According to many reports, Chattanooga has reawakened the startup environment in Tennessee, with 82 startups generating around 1 trillion dollars. The city has hosted around 250 startup events in 2023, attracting hundreds of entrepreneurs and many angel investors.

Do you want to secure funding for your Chattanooga-based startup?

Well, this article was destined to meet you. So, let's wait no longer and dive into the list of the top 6 angel investors in Chattanooga.

Top Angel 6 Investors in Chattanooga

Following is the list of the same angel investors and venture capital firms in Chattanooga. Before pitching to any investor, it is important to verify all the information from official sources and pitch accordingly.

VentureSouth

Website: Home - VentureSouth

Investor Type: Venture Capital Firm

Investment Interests: Agtech, Healthcare, IT and E-Commerce.

Investment Stage: Early Stage

VentureSouth is one of the biggest venture capital funds for southeastern startups. The network was founded in 2008 by Matt Dunbar, Charlie Banks, and Paul Clark. After funding over $80 million in more than 100 companies, the venture capital firm is ready to expand its portfolio and fund new ideas.

Each year, VentureSouth conducts several pitching competitions to fund the startup with the highest growth potential. The investors usually fund a venture that can generate 3-5 times ROI within 24 months of their investment.

During many reports, VentureSouth has been named one of the Top 10 Angel Groups because of its active funding. They also support their portfolio companies with advisors, board members, follow-on capital, and strategic resources.

The investment range of VentureSouth ranges from 200,000 to several million dollars depending on the company. Notable companies in their portfolio are:

AmplifiedAg: AmplifiedAg is a manufacturer and supplier of indoor aeroponic farms through its subsidiaries.

ATW: ATW Companies, Inc. is a metals technology company aiming to strategically help develop and market high-precision metal devices.

BIO54: Bio 54 is developing a novel drug/device combination called BXP154 to treat external bleeding from minor wounds in anticoagulant patients.

Baebies: Baebies was founded in 2014 by Richard West and Vamsee Pamula following the successful development of digital microfluidics technology. It has raised more than $37.5 million in equity from 87 investors, including VentureSouth.

Babylon Micro Farms: Babylon Micro-Farms offers a smart, scalable indoor farm tailored to meet the client's needs.

The JumpFund

Website: About | The JumpFund

Investor Type: Venture Capital Firm

Investment Interests: Tech and Energy

Investment Stage: Early and Seed Stage

The JumpFund is a venture capital firm located in Chattanooga and has been funding startups for almost a decade. They have invested in more than 30 women-led companies and are ready to fund more through their pitching competitions.

The GrowthFund highly focuses on tech women-led startups as they want to empower women businesses in the startup ecosystem of Chattanooga. It is a unique all-women investment group that only funds women-led ventures in the southeastern United States.

Aside from investments, the founders Cory Allison, Kristina Montague, and Shelley Prevost also arrange workshops to guide their portfolio companies. They have arranged several mentorship programs and networking events to help startups overcome problems they face at various stages.

The investment range of The JumpFund ranges from $150,000 to several million dollars, depending on the startup type. Some of their startup fundings are:

Casca: A footwear brand that focuses on creating comfortable, responsibly sourced, premium footwear.

SuperFan U: A developer of a fan loyalty and engagement platform. Their platform is designed to help schools engage and communicate with their fan base. The company was acquired By Presto Sports.

MomSource Network: An online community platform that provides ongoing professional development, virtual networking, and a gateway to progressive employers. The company was acquired by Boulo Solutions.

PartPic: A visual recognition technology company that saves users time and money searching for replacement maintenance, repair, and operations (MRO) parts. The company was acquired by Amazon.

Capacity Capital

Website: Capacity Capital — Fund

Investor Type: Venture Capital Firm

Investment Interests: Tech, In-Demand Services, Light mfg.

Investment Stage: Seed

Founded in 2016, Capacity Capital is a venture capital firm focusing on Chattanooga-based startups. Consisting of many investors, Capacity Capital usually funds tech-related startups at the seed stage.

During the screening tests, the investors at Capacity Capital focus on high-margin, capital-efficient, and profitable ventures that can generate 2x revenue within 12-24 months of the funding.

Once they have funded a venture, Capacity Capital also conducts different mentorship programs to guide their portfolio companies in the best way. They also have a publicly accessible blog and upload informational content to guide the startup community.

The investment range of Capacity Capital ranges from $20,000 to $250,000. They usually invest in a lot of startups but don't make their portfolio companies public.

River Associates

Website: River Associates

Investor Type: Venture Capital Firm

Investment Interests: manufacturing, distribution, industrial services, and business services

Investment Stage: Seed

Based in Chattanooga, Tennessee, River Associates was founded in 1989 and also provides funding to startups. River Associates typically targets U.S. & Canadian companies with EBITDA as a private equity firm. Since its inception, the network has funded over 100 companies and continues to expand its portfolio

They fund startups through pitching contests. During the screening tests, the investor panel usually consists of 3-6 investors and asks startups about their estimated growth and competitors. The startups that has the most unique idea and low competition often passes the screening tests and secures an investment.

Similarly, like most other VC firms, River Associates also has a network of experienced mentors who guide startups. They arrange workshops and various other programs to monitor and guide startups throughout their journey.

The investment range of River Associates ranges from $ 3 million to $ 12 million. Some of their recent portfolio companies are:

Double E Company: Double E is a manufacturer and worldwide supplier of web handling equipment for the paper, film, and foil converting, packaging, and web printing industries.

Hoskin Scientific: Hoskin Scientific is a measurement system company that provides monitoring or testing instrumentation and systems.

JBC Technologies: JBC Technologies is a solutions provider that utilizes die-cutting and non-metallic fabrication skills. They also develop a strong product design knowledge to cost effectively produce custom die-cut parts from a wide spectrum of flexible materials.

Pelco Products: Pelco Products is an innovative company that designs products that withstand the dynamic effects of nature while adding value to any project.

Stephen Culp

LinkedIn: Stephen Culp - CEO @ S Ventures

Investor Type: Individual Angel Investor

Investment Interests: Tech, Education, and Healthcare.

Investment Stage: Seed

Stephen Culp is an angel investor who serves as a Partner at Chattanooga Renaissance Fund. He is a Co-Founder and serves as Chairman at Smart Furniture. With all his experience, Stephen Culp has also started to fund startups individually, with almost 48 companies in his portfolio.

Usually, Stephen Culp recognizes deserving startups through different events and provides funding once he understands the startup's growth potential, market strategy, and standings.

The investment range of Stephen Culp usually depends on the startup as he funds from 50,000 to 200,000. Some of his recent investments are:

Binti: Binti is a mission-driven technology company that builds modern software with the goal of helping every child have a family.

Stride: Formerly known as K12 Inc., Stride is an education services company that provides online learning.

Able Lending: Able is a fintech startup that has built an engine to speed up the processing of documents and other data required for commercial loans.

Victor Gatto

LinkedIn: Vic Gatto | LinkedIn

Investor Type: Individual Angel Investor

Investment Interests: Software, E-Commerce and Healthcare. 

Investment Stage: Seed

Victor Gatto is an individual angel investor with a rich entrepreneurship and venture capital background. He is the Founder and CEO of Jumpstart Health Investors. Before Jumpstart, he was a partner at Solidus, a venture capital firm.

Similarly, Victor Gatto has been an investor in healthcare and technology since 2001 and has made over 200 investments through his VC firm and 21 investments in early-stage innovation companies as an individual investor.

Like many other investors, Victor Gatto guides his portfolio companies to help them exit successfully. Victor Gatto's investment range can range up to $200,000. Some of his notable investments include:

Populr.me: A software company that provided a platform for users to create and share single web pages known as "POP" s. These could be used for sales pitches, proposals, presentations, and more.

RentStuff: A company that helps users search, find, and compare rental items, stores, and deals. It connected people looking to rent items to suitable local rental companies.

Umano: A shopping platform that provides women, men, and children items through their website with fast international shipping.

Wrap Up

So, there you have the list of top angel investors in Chattanooga. Before we wrap up, allow me to share some final words of wisdom on how you can pitch to investors.

When pitching to investors, always keep in mind that angel investors look for an identical thing in all startups, and that is profitability. You want to ensure that your startup looks profitable and create an amazing pitch deck that displays more numbers instead of blunt claims.

Finally, it is also recommended to create a practical checklist for pitching to investors, allowing you to revise all the points before screening tests.

Good Luck!

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